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Canadian Anti-dumping and Countervailing Investigation Initiated for Certain PET Resin

On August 18th, 2017, the Canada Border Services Agency (CBSA) initiated anti-dumping and countervailing investigations pursuant to the Special Import Measures Act (SIMA) relating to allegations of dumping and subsidizing of certain polyethylene terephthalate resin (PET resin) originating in or exported from the People’s Republic of China (China), the Republic of India (India), the Sultanate of Oman (Oman) and the Islamic Republic of Pakistan (Pakistan).

These investigations have been initiated as a result of a Complaint filed by Selenis Canada, a PET resin manufacturer operating out of Montreal.

PET resin is a thermoplastic polyester polymer. Products manufactured with PET resin are clear, sterile, light, and thermally stable. PET resin may be sold in bulk form, such as chips or pellets, to end users. It is ultimately used to produce bottles and containers for liquids and food products, industrial strapping, and carpet. The most common end-use applications for bottle-grade PET resin include soda bottles, water bottles, and other containers for food, beverages, household, and automotive product storage.

Prior to January 1, 2017, PET resin goods were normally classified under the following Harmonized System (HS) codes:

3907.60.00.10

3907.60.00.90

Beginning January 1, 2017, under the revised customs tariff schedule, the goods in question would normally be imported under the following HS codes:

3907.61.00.00

3907.69.00.10

3907.69.00.90

In 2016, 117,773,036 kg of PET resin was imported into Canada at a total value of CAD 174,047,072.

With the initiation of these investigations, the Canadian International Trade Tribunal (“CITT”) has commenced a preliminary inquiry to determine whether the evidence adduced in the Complaint discloses a reasonable indication that imports are harming the Canadian producer. The CITT will issue its decision by October 17, 2017, with a Statement of Reasons to follow by November 1, 2017. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices. It will make its preliminary decision by November 16, 2017, with a Statement of Reasons to follow by December 1, 2017.

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and counter-vailing matters. Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, we are at your disposal.